Where is it safe to buy ETF funds?
It is safest to buy in the fund management company or the secondary market, because these are its two official purchase channels. You don't need a stock account to buy in a fund company, but you need a stock account to buy in the secondary market. You can choose the purchase channel according to your own situation.
Investors can buy or redeem fund shares from fund management companies, and at the same time, they can buy and sell ETF shares at the market price in the secondary market like closed-end funds. However, the purchase and redemption must use a basket of stocks for fund shares or use fund shares for a basket of stocks.
ETF trading is the same as stocks and closed-end funds. Investors can use existing securities accounts or fund accounts to trade in the secondary market, and ETF trading in the secondary market also needs to abide by the relevant rules of the exchange.
ETF funds are divided into floor redemption and floor trading, with different fees:
When trading on 1ETF, the trading commission is generally the same as that of ordinary stock trading, and does not exceed 0.3% of the transaction amount. The starting point is 5 yuan (the actual transaction commission rate is subject to the sales department), and stamp duty is not charged.
22 The subscription fee and redemption fee are charged for redemption in ETF, which shall be implemented in accordance with the regulations of the fund company.
The difference between trading currency ETF and other ETFs is that:
In the secondary market, money ETFs can be traded in a T+0 cycle, and other ETFs are temporarily not supported except for some varieties, such as gold ETFs and bond ETFs.
Because the securities market transaction and the subscription and redemption mechanism exist at the same time, when there is a price difference between the ETF market price and the net value of the fund unit, investors can carry out arbitrage trading. The existence of arbitrage mechanism makes ETF avoid the common discount problem of closed-end funds.